TikTok Will Leave ByteDance Company If It Can’t Agree With The USA
TikTok is seeking new solutions as a result of ongoing lawsuits in the US. The company plans to leave its parent company ByteDance. Details are here!
Chinese TikTok company is considering leaving its parent company ByteDance to address concerns about US national security risks, Bloomberg News reports, citing people with knowledge on the subject.
A divestiture, which could result in a sale or an initial public offering, is viewed as a last resort and will only be resorted to if the company’s current bid with US national security officials is not approved, Bloomberg reports.
Tiktok is undergoing national security review by the United States Committee on Foreign Investment (CFIUS) and last year agreed to implement a series of measures under a new plan called the “Texas Project.”
US Concerns About TikTok Continue
TikTok is used by more than 100 million Americans and is increasingly criticized for fears that user data could fall into the hands of the Chinese government and harm Western security interests. TikTok CEO Shou Zi Chew is expected to appear before the US Congress next week. CFIUS, a powerful national security agency, unanimously recommended ByteDance to divest TikTok in 2020, amid concerns that user data could be transferred to the Chinese government.
TikTok and CFIUS have been negotiating data security requirements for more than two years. TikTok states that it has spent more than $1.5 billion on its rigorous data security efforts and denies the espionage allegations.